Gold hits over 1-week high as dollar dips
May 23 (Reuters) - Gold prices touched a more than one-week high on Monday, as an easing dollar supported greenback-priced bullion, although rising U.S. Treasury yields capped gains. FUNDAMENTALS * Spot gold rose 0.3% to $1,850.39 per ounce, by 0039 GMT, their highest since May 12. U.S. gold futures also gained 0.3% to $1,847.90. * The dollar began the week on the back foot, following its first weekly loss in nearly two months, as investors cut bets on more dollar gains from rising U.S. rates and hoped that easing lockdowns in China can aid global growth. * A weaker dollar makes bullion more attractive for overseas buyers. * However, benchmark U.S. 10-year Treasury yields firmed, limiting demand for zero-yield gold. * St. Louis Federal Reserve Bank President James Bullard reiterated his view last week that the U.S. central bank ought to raise interest rates to 3.5% this year to get high inflation more quickly under control. * Bullion, seen as a safe store of value during times of economic crises, tends to become less attractive to investors when U.S. interest rates are raised because it yields no interest. * Asian stocks faced an uncertain start on Monday as persistent inflation fears and the prospect of rising interest rates dogged the global economic outlook. * SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.69% to 1,063.43 tonnes on Friday from 1,056.18 tonnes on Thursday. * Spot silver was up 0.7% at $21.90 per ounce, platinum firmed 0.3% to $958.43, and palladium climbed 0.8% to $1,979.27. DATA/EVENTS (GMT) 0800 Germany Ifo Business Climate New May 0800 Germany Ifo Current Conditions New May 0800 Germany Ifo Expectations New May 1300 Euro zone finance ministers meet on fiscal rules reform, banking union in Brussels (Reporting by Bharat Govind Gautam in Bengaluru; editing by Uttaresh.V)
